senex stake threatens drillsearch's oil play

The following is great news for the likes of AQO guys. This sector is HOTTING up and we may see AQO back to 20c in the short term. PEL 570 is our trump card. Im expecting some very exciting news on this acreage before Xmas. Something has to give. Fingers crossed and GL to all.

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Senex stake threatens Drillsearch's oil play

by: Paul Garvey
From:The Australian
October 10, 201212:00AM


SENEX Energy has emerged as a potential spoiler to Drillsearch Energy's $118 million bid for control of fellow Cooper Basin oil and gas explorer Acer Energy.

Senex yesterday revealed it had spent almost $8m building a 6.4 per cent stake in Acer.

The interest was acquired last week at between 26.5c and 27c a share. That compares with a bid of 25.5c announced by Drillsearch last week.

Shares in Acer yesterday climbed another 2c, or 7.4 per cent, to 29c as investors bet that the entry of Senex could lead to either a rival takeover offer, or a lift in Drillsearch's offer price.

Senex managing director Ian Davies was yesterday ambivalent about the company's intentions for Acer, saying only that he was keeping his options open.

"There are many potential outcomes, but it's a long game," Mr Davies told The Australian.

Senex is already involved in a number of joint ventures with Acer over acreage in the Cooper Basin.

"We like the assets they have, we like the management team, we like the assets of Acer's that are in joint venture with us, and it's in our interests to make sure we understand what's going on in our area of the basin," Mr Davies said.

Senex has $170m in cash, having recently completed a $155m raising in June, meaning it could finance a rival offer for Acer out of its existing position.

It is not the first time Senex has emerged as a potential spoiler to a takeover offer of another joint-venture partner.

In 2010, the group took a 20 per cent stake in Impress Energy, effectively blocking efforts by Beach Energy to acquire Impress through a scheme of arrangement. Beach eventually acquired Impress through a higher takeover bid.

Drillsearch declined to comment on yesterday's developments.

The offer is Drillsearch's second attempt at acquiring Acer, which formerly went under the name Innamincka Petroleum.

Shares in Senex closed down 1c at 64.5, while Drillsearch was off 3c at $1.57.